General liability insurance for technology businesses and IT professionals

General liability insurance is often the first policy that an IT business needs. Your clients trust you with their technology, and they could hold you responsible if it’s damaged. General liability coverage protects client property and guards against third-party injuries. It is often required when you sign a commercial lease.

General liability insurance provides coverage related to:

• Client personal injuries
• Client personal property damage
• Advertising injuries, such as slander

If you run a small PC building or edtech business, you may be able to bundle a general liability insurance policy with commercial property insurance, which helps cover your business property, in a business owner’s policy. A BOP costs less than purchasing each policy separately. Businesses that are eligible for a BOP typically:

• Have fewer than 100 employees
• Have a small office or workplace
• Generate less than $1 million in annual income
• Operate in a low-risk industry
• Require less than one year of business interruption insurance

If a client or delivery person slips and falls at a data analysis firm or an IT consultant's home office, your business could face a lawsuit. That means you might end up paying for the injured person’s medical expenses, along with the cost of hiring a lawyer and defense costs. General liability insurance can cover:

• Medical bills
• Attorney’s fees
• Court-ordered judgments
• Funeral expenses in fatal incidents

This policy does not cover employee bodily injuries. For that, you’ll need workers’ compensation insurance.

In the tech industry, even a simple mistake can be costly. General liability insurance protects you when customer property is damaged.

For instance, if a technician at your computer repair shop accidentally drops a client’s laptop, your general liability policy could help pay for the cost of replacing it. If there is a disagreement over the cost of repairs, general liability could cover attorney’s fees or a court-ordered judgment.

General liability insurance also protects your IT business from off-site incidents. For example, if a telecom cabling installer damages equipment while working at a client’s office, any resulting liability claims alleging property damage would be covered by your policy.

While advertising your company and its services, it’s possible to inadvertently copy a competitor’s slogan or logo. Accidental advertising injuries are covered by general liability insurance. That includes:

• Defamation, both libel (written) and slander (spoken)
• Intellectual property (IP) claims, such as copyright infringement

If you use advertising or promotional materials to attract clients to your IT training business, you’ll want to make sure your insurance includes this protection.

Note that general liability insurance only includes this protection related to advertising, not for services or products provided by your company. Look to an errors and omissions policy for media liability protection for websites, apps, and other content created by your business.

While general liability insurance coverage safeguards against many common risks in the technology industry, it does not provide complete protection. Small business owners for tech companies, including managed service providers (MSPs) and data centers, should also consider:

Errors and omissions insurance (E&O): This policy is critical for IT consultants and other tech professionals. Also called professional liability insurance, it can cover lawsuits related to work mistakes, such as an error that causes a client’s server to crash.

Cyber insurance: IT businesses may want to invest in this coverage to protect sensitive data, such as clients’ credit card numbers. This policy helps companies recover from data breaches, and also covers the cost of lawsuits over breaches that affect a client.

Fidelity bonds: IT companies are often privy to sensitive client data and business operations. This means an employee could jeopardize your business by engaging in unlawful access, theft, or fraud. Fidelity bonds safeguard your business against certain criminal acts committed by employees.

Workers’ compensation insurance: This policy covers medical bills and disability benefits from work-related injuries and illnesses. Most states require technology businesses with employees to purchase workers’ compensation.

Commercial auto insurance: This policy is required in most states for business-owned vehicles. It can cover property damage and medical bills in an accident involving your IT company's vehicle, along with theft, vandalism, and weather damage.

Are you ready to safeguard your tech enterprise with commercial general liability insurance? Simply complete Insureon’s easy online application today. We partner with top-rated U.S. insurance companies to get you the best business liability insurance. You can also consult with an insurance agent on the types of business insurance you need.

Once you find a policy that fits your needs, you can begin coverage and access your certificate of insurance in less than 24 hours.